ECONOMIC SCHOOLS OF THOUGHT THERE WILL BE A
ECONOMIC SCHOOLS OF THOUGHT THERE WILL BE A MATCHING TYPE TEST SOON, SO STAY FOCUSED.
Adam Smith • Felt that self-interest could produce the ‘common good. ’ • In 1776 he published “The Wealth of Nations”, which advocates Free Trade and common good. • .
David Ricardo 1772 -1823 • The idea that a country should produce a good for which it has the lowest opportunity cost. • Comparative Advantage
Karl Marx • Wrote the Communist Manifesto (1848) • Used as an Ideological tool in places such as Russia • Said that the workers should overthrow their bosses • Collective ownership
Alfred Marshall 1842 -1924 • Wrote the summary of Classical Economics titled “Principles of Economics” • Came up with ‘Supply and Demand’ and ‘Marginal Utility’
John Maynard Keynes • Felt that government spending policies could stimulate the economy. • Popular idea during the Great Depression (1930’s) • ‘
Socialism • Communism lite • Governments introduce state run services such as public education and healthcare • Govt regulation is important • BC is Socialist – how?
• Economists like Hayek began to advocate against government involvement in the economy Austrian School of Economics
• Milton Friedman supported deregulation of the markets Chicago School of Economics
Monetarism • Advocated a slow, steady increase in the money supply • Printing more or less money can influence the rate of inflation
• School of Economic thought suggests a trickle-down effect due to invested capital and reduced barriers of production • More money will allow for more business, which will trickle down through the economy. Supply Side Economics
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